With the increasing in popularity of crypto currency, more people are getting attracted to it. The number of investors in crypto currency is increasing day by day and to support them, many online brokers and exchanges have come into the market.
The problem with crypto currency is that it is unregulated and not under the control of any banking regulatory authority. Hence some people feel worried why they should leave the comfort of keeping the money at bank and earn normal FD interest. But there are many people who want to grow their money at a higher rate of interest. Since crypto currencies offer a higher rate of return, many people are ready to take that trading risk and feel interested in putting in their money in crypto currencies.
Since they are not under the control of any bank or any credit rating agency gives approval to it, there are many risks in investing in crypto currencies. The investors also hardly get any inside information of these currencies and if a currency faces any unwanted misfortune, there is no authority which an investor can hold of.
But in spite of all the criticism, more people have felt interested in them because of the high return which they offer. Hence the world of crypto currency has been able to overcome all these criticism and grow at a very fast rate. The total amount of money invested in crypto currency stands at $500 billion and the number is still going with every passing day.
When Bitcoin came into the market, a single unit of it was priced at $800. Within a few years of its launch, the demand for it increased so much that it increased to $20,000 per unit. After reaching the high peak, it scaled down a little bit and now is being traded at $800 per unit. There are other popular currencies like Ethereum which is currently being traded at $138. Dash is another unit whose single unit is priced at $44.
You can reduce the trading risk by spreading your investment in different currencies. If you have $2500 to invest, you should put 50% of the money in reputed currencies like Bitcoin, XRP, Litecoin and Dash which are expected to give good return after some point of time. The remaining 50% of the amount you can invest in less known currencies. But before investing in them, do some research and check whether the fundamentals of these currencies are strong or not.
